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Southwest Airlines (LUV)

Southwest Airlines Co (NYSE:LUV) said it was open to acquisitions but added that this strategy would come secondary to growing the airline organically, said CFO Laura Wright, according to Reuters. "No question, if the right opportunity presented itself with all the right facts, we would certainly be interested," Wright said on Wednesday. But Wright quickly added that Southwest, the second-largest airline by market value, has only made acquisitions three times in its nearly 40-year history. "From where we sit, we don't see consolidation as something that's necessary for us," Wright said.
The U.S. industry has lost some $11 billion in 2009 alone, according to the International Air Transport Association. But Wright and other airline executives have said in recent months that travel demand has strengthened. Continued "capacity discipline" as well as economic recovery could pave the way for U.S. airlines to improve the profitability, or yields, on each flight, Wright said.

Feb 25 · 2:16:00 PM · Source: Reuters
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by Steve Wieczorek

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